Eastside Distilling, Inc. (NASDAQ:EAST) Q3 2022 Earnings Conference Call November 14, 2022 5:00 PM ET Company Participants Heather Whyte – Vice President-Human Resources Geoffrey Gwin – Interim Chief Executive Officer and Chief Financial Officer Tiffany Milton – Controller Amy Lancer – Chief Commercial Officer-Spirits Conference Call Participants Ross Taylor – ARS Investment Operator Good day, and welcome to the Eastside Distilling Third Quarter 2022 Financial Results Conference Call. All participants will ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Common Stock, $0.0001 par value EAST The Nasdaq Stock Market LLC (Title of Each Class) (Trading Symbol) (Name of Each Exchange on Which Registered) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to __ ...

Eastside Distilling, Inc. (NASDAQ:EAST) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants Heather Whyte - Vice president of Human Resources Geoffrey Gwin - Interim Chief Executive Officer and Chief Financial Officer Tiffany Milton - Controller Conference Call Participants Kelvin Seetoh - Crater Lake Operator Good afternoon and welcome to the Eastside Distilling Third Quarter 2022 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instr ...

Eastside Distilling, Inc. (NASDAQ:EAST) Q1 2022 Earnings Conference Call May 16, 2022 5:00 PM ET Company Participants Amy Brassard - Corporate Affairs Director and Corporate Secretary Geoffrey Gwin - Interim Chief Executive Officer and Chief Financial Officer Tiffany Milton - Controller Amy Lancer - Chief Commercial Officer Conference Call Participants Sean McGowan - ROTH Capital Partners Kelvin Seetoh - Crater Lake Ross Taylor - ARS Investment Partners Bjorn Ng - 10x Capital Operator Good day and welcome t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Common Stock, $0.0001 par value EAST The Nasdaq Stock Market LLC (Title of Each Class) (Trading Symbol) (Name of Each Exchange on Which Registered) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______ ...

Eastside Distilling, Inc. (NASDAQ:EAST) Q4 2021 Earnings Conference Call March 30, 2022 5:00 PM ET Company Participants Geoffrey Gwin - Interim CEO and CFO Amy Brassard - Corporate Affairs Director and Corporate Secretary Tiffany Milton - Controller Amy Lancer - Chief Commercial Officer Conference Call Participants Harold Weber - Aegis Capital Ross Taylor - ARS Investment Partners Matt Campbell - Lourde Capital Operator Good day, and welcome to the Eastside Distilling Fourth Quarter and Yearend 2021 Financi ...

U. S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Common Stock, $0.0001 par value EAST The Nasdaq Stock Market LLC (Title of Each Class) (Trading Symbol) (Name of Each Exchange on Which Registered) FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to _____________ Commissi ...

Eastside Distilling, Inc. (NASDAQ:EAST) Business Update Conference Call February 16, 2022 5:00 PM ET Company Participants Tiffany Milton - CPA Controller Geoffrey Gwin - Interim Chief Executive Officer & Chief Financial Officer Amy Lancer - Chief Commercial Officer of Spirits Conference Call Participants Bjorn Ng - 10X Capital Sean McGowan - ROTH Capital Partners Ross Taylor - ARS Investment Partners Kelvin Seetoh - 10X Capital Operator Good day, and welcome to the Eastside Distilling Business Update Confer ...

Financial Data and Key Metrics Changes - Q3 2021 consolidated revenue decreased by 23% compared to the previous year, primarily due to the Craft Canning and Bottling division [9] - Q3 2021 sales were reported at $3.3 million, down from $4.3 million in the prior year [30] - Spirits net sales remained flat at $1.4 million compared to the prior year [30] - Adjusted EBITDA loss improved by 16% year-over-year, amounting to a loss of $611,000 [35] - Net loss per share was $0.32, compared to $0.17 in the previous year [35] Business Line Data and Key Metrics Changes - Craft Canning division experienced a 32% year-over-year decrease in revenue due to lower demand [10] - Spirits division's 9-liter case volume was down 7%, but when adjusted for discontinued products, volume was up 8% year-over-year [14] - Burnside's gross profit margin improved year-over-year despite lower case sales due to price increases and focus on higher-margin SKUs [31] Market Data and Key Metrics Changes - The Craft Canning market has seen a shift as on-premise sales return, reducing demand for mobile canning services [52] - The company is pivoting to service a broader beverage market beyond craft beer, including kombucha, energy drinks, and ready-to-drink beverages [53] Company Strategy and Development Direction - The company is focused on a three-year strategic growth plan, emphasizing the need for adequate liquidity to support operations and growth initiatives [19][29] - A shift in distribution strategy is underway, moving from large distributors to smaller, craft-focused distributors to enhance engagement and sales velocity [75] - The company plans to leverage partnerships, such as with Frito-Lay, to enhance product offerings and marketing strategies [82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround progress, indicating that 80% to 90% of the turnaround is complete [39] - The company is optimistic about future growth, particularly in the spirits division, as it focuses on premium and craft-oriented products [74] - Management highlighted the importance of marketing investments in markets with established distribution to drive brand awareness and sales [44] Other Important Information - The company has secured a new 50,000 square-foot facility for craft operations, which will house new equipment and support growth initiatives [11] - A five-year agreement with O-I Packaging Solutions for glass bottle supply is being finalized to ensure product availability [15] Q&A Session Summary Question: What stage of the turnaround is the company currently at? - Management indicated that the company is in the latter stages of the turnaround, with most issues addressed [39] Question: How is the marketing strategy evolving, especially with the partnership with the Portland Trail Blazers? - Management confirmed an increased willingness to invest in marketing, focusing on markets with strong distribution and consumer demand [42][44] Question: How will the digital can printing and pasteurizer impact sales and margins for Craft Canning? - Management explained that these innovations will allow the company to service a broader beverage market and improve operational efficiency [52][56] Question: What feedback has been received from current Craft Canning customers regarding market shifts? - Management noted that many small brewers are investing in their own equipment and shifting back to keg business, impacting demand for mobile canning [62][63] Question: What is the significance of the partnership with Frito-Lay? - Management emphasized the importance of craftsmanship and micro-marketing capabilities that attracted Frito-Lay to partner with the company [82]

[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Eastside Distilling, Inc. as of September 30, 2021, including balance sheets, operations, cash flows, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets reflect a significant improvement in stockholders' equity by September 30, 2021, primarily due to reduced current liabilities Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Sep 30, 2021 (Unaudited) | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$29,440** | **$31,732** | | Total Current Assets | $12,063 | $12,841 | | Intangible assets, net | $13,728 | $14,038 | | **Total Liabilities** | **$18,138** | **$32,840** | | Total Current Liabilities | $6,568 | $30,259 | | **Total Stockholders' Equity (Deficit)** | **$11,302** | **$(1,108)** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements of operations for the nine months ended September 30, 2021, show decreased net sales but a significant shift to net income, driven by discontinued operations and other income Statement of Operations Summary (Nine Months Ended Sep 30, in thousands) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net Sales | $9,613 | $10,569 | | Gross Profit | $3,038 | $3,550 | | Loss from Operations | $(5,196) | $(6,397) | | Net Income (Loss) from Discontinued Operations | $3,869 | $(227) | | **Net Income (Loss)** | **$30** | **$(7,462)** | | Net Loss Attributable to Common Shareholders | $(2,258) | $(7,462) | | Basic Net Loss Per Share | $(0.19) | $(0.75) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated statements of cash flows for the nine months ended September 30, 2021, show net cash used in operations, offset by investing and financing activities, leading to an overall cash increase Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(2,652) | $(2,855) | | Net Cash Provided by Investing Activities | $3,283 | $235 | | Net Cash Provided by Financing Activities | $1,303 | $3,236 | | **Net Increase in Cash** | **$1,934** | **$616** | | Cash at End of Period | $2,770 | $959 | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes to the consolidated financial statements detail the company's business, liquidity, accounting policies, discontinued operations, debt facilities, related party transactions, and equity activities - The company's primary capital needs for operations and debt repayment are **not met by operational cash flow**, making it **dependent on debt and equity financing**[23](index=23&type=chunk) - On February 5, 2021, the company sold its Redneck Riviera inventory for **$4.7 million** and terminated the associated license agreement for an additional **$3.0 million**, with these activities now classified as **discontinued operations**[65](index=65&type=chunk) - The company is finalizing an amendment to **extend the maturity date** of its Loan Agreement with Live Oak, which was due November 11, 2021[100](index=100&type=chunk)[142](index=142&type=chunk) - Subsequent to the quarter end, on October 19, 2021, the company raised **$2.5 million** through a **private placement of Series B Convertible Preferred Stock**[143](index=143&type=chunk)[144](index=144&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting decreased sales but improved net income for the nine months ended September 30, 2021, driven by asset sales and PPP loan forgiveness, with liquidity enhanced by external capital [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Results of operations for the nine months ended September 30, 2021, show decreased sales and a slight gross margin decline, offset by significant reductions in operating expenses Sales Breakdown (Nine Months Ended Sep 30, in thousands) | Segment | 2021 | % of Total | 2020 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Wholesale finished goods | $4,234 | 42% | $4,471 | 40% | | Canning & Bottling | $5,898 | 58% | $6,692 | 60% | | **Total** | **$10,138** | | **$11,242** | | - Gross margin for the nine-month period **decreased from 34% in 2020 to 32% in 2021**, primarily due to higher cost of goods and in-bound freight[167](index=167&type=chunk) - Sales and marketing expenses for the nine-month period **decreased by $1.4 million**, from **$3.3 million in 2020 to $1.9 million in 2021**, mainly due to lower headcount as the company focused sales efforts on western markets[169](index=169&type=chunk) - **Other income of $2.2 million** was recognized in the first nine months of 2021, primarily from the **forgiveness of PPP loans** and the remeasurement of deferred consideration for the Azuñia acquisition[172](index=172&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity and capital resources as of September 30, 2021, show significant improvement in cash and working capital, driven by financing activities and PPP loan forgiveness, with future operations dependent on revenue growth or additional funding - Working capital **increased by $22.9 million** from December 31, 2020, primarily due to increased cash balances and the repayment or refinancing of current debt[187](index=187&type=chunk) - The Small Business Administration (SBA) approved the **full forgiveness** of the company's **$1.4 million Paycheck Protection Program (PPP) loan** during 2021[186](index=186&type=chunk) Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Operating Activities | $(2.6) | $(2.9) | | Investing Activities | $3.3 | $0.2 | | Financing Activities | $1.3 | $3.2 | [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is a "smaller reporting company" and is therefore not required to provide the information requested by this item - As a "smaller reporting company," Eastside Distilling is **exempt from providing quantitative and qualitative disclosures about market risk**[203](index=203&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2021[205](index=205&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[206](index=206&type=chunk) [PART II: OTHER INFORMATION](index=37&type=section&id=PART%20II%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201%20Legal%20Proceedings) The company is defending a lawsuit filed by its former CEO and Chairman, Grover Wickersham, disputing allegations of fraud, breach of contract, and defamation - The company is **defending a lawsuit** filed by former CEO and Chairman Grover Wickersham, which alleges **fraud, breach of contract, defamation**, and other claims[208](index=208&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - **No material changes in risk factors** were reported compared to those in the Form 10-K for the year ended December 31, 2020[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - **None**[212](index=212&type=chunk) [Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - **None**[213](index=213&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[214](index=214&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - **None**[215](index=215&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The report includes **CEO and CFO certifications** pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350, as well as **Inline XBRL instance and taxonomy documents**[215](index=215&type=chunk)